U.S. Aging Creates A Long-Term Challenge For Global Big Pharma Ratings - S&P Credit Research

U.S. Aging Creates A Long-Term Challenge For Global Big Pharma Ratings

7 pages (2731 words) — Published Jun 26, 2013
Price $600.00  |  Buy this Report Now

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Abstract:

Despite eroding overseas profit margins due to government payor pricing pressures outside the U.S., large American pharmaceutical companies with global reach have generally been successful in offsetting shrinking overseas margins by implementing price increases at home. These pricing increases have averaged in the medium- to upper-single-digit percent range annually over the past few years. Domestic pricing flexibility has been an important factor in offsetting revenue losses from patent expirations and supporting the stable outlook for highly rated U.S. Big Pharma companies. The U.S. market is also critical for large global European pharmaceutical companies' profitability, as their substantial American sales and profits are helping to offset pricing pressure elsewhere, contributing to their healthy credit standing. But Standard&Poor's Ratings Services

  
Brief Excerpt:

...Despite eroding overseas profit margins due to government payor pricing pressures outside the U.S., large American pharmaceutical companies with global reach have generally been successful in offsetting shrinking overseas margins by implementing price increases at home. These pricing increases have averaged in the medium- to upper-single-digit percent range annually over the past few years. Domestic pricing flexibility has been an important factor in offsetting revenue losses from patent expirations and supporting the stable outlook for highly rated U.S. Big Pharma companies. The U.S. market is also critical for large global European pharmaceutical companies' profitability, as their substantial American sales and profits are helping to offset pricing pressure elsewhere, contributing to their healthy credit standing. But Standard & Poor's Ratings Services is concerned that Big Pharma's American pricing flexibility may diminish increasingly over the next few years because of the rapidly mounting...

  
Report Type:

Commentary

Sector
Global Issuers, Structured Finance
Format:
PDF Adobe Acrobat
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MLA:
S&P Credit Research. "U.S. Aging Creates A Long-Term Challenge For Global Big Pharma Ratings" Jun 26, 2013. Alacra Store. Dec 20, 2014. <http://www.alacrastore.com/s-and-p-credit-research/U-S-Aging-Creates-A-Long-Term-Challenge-For-Global-Big-Pharma-Ratings-1161244>
  
APA:
S&P Credit Research. (). U.S. Aging Creates A Long-Term Challenge For Global Big Pharma Ratings Jun 26, 2013. New York, NY: Alacra Store. Retrieved Dec 20, 2014 from <http://www.alacrastore.com/s-and-p-credit-research/U-S-Aging-Creates-A-Long-Term-Challenge-For-Global-Big-Pharma-Ratings-1161244>
  
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